Roots (TSX:ROOT) Debt-to-Equity : 0.65 (As of Jan. 2024)

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What is Roots Debt-to-Equity?

Roots's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was C$25.2 Mil. Roots's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was C$99.7 Mil. Roots's Total Stockholders Equity for the quarter that ended in Jan. 2024 was C$190.8 Mil. Roots's debt to equity for the quarter that ended in Jan. 2024 was 0.65.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Roots's Debt-to-Equity or its related term are showing as below:

TSX:ROOT' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.43 Med: 0.65 Max: 1.65
Current: 0.65

During the past 9 years, the highest Debt-to-Equity Ratio of Roots was 1.65. The lowest was 0.43. And the median was 0.65.

TSX:ROOT's Debt-to-Equity is ranked worse than
51.15% of 1003 companies
in the Retail - Cyclical industry
Industry Median: 0.64 vs TSX:ROOT: 0.65

Roots Debt-to-Equity Historical Data

The historical data trend for Roots's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Roots Debt-to-Equity Chart

Roots Annual Data

Trend

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Debt-to-Equity

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1.65

1.05

0.80

0.73

0.65

Roots Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-Equity	Get a 7-Day Free Trial															0.73	0.72	0.76	0.79	0.65

Competitive Comparison of Roots's Debt-to-Equity

For the Apparel Retail subindustry, Roots's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Roots's Debt-to-Equity Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Roots's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Roots's Debt-to-Equity falls into.

Roots Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Roots's Debt to Equity Ratio for the fiscal year that ended in Jan. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(25.17	+	99.712)	/	190.817
	=	0.65

Roots's Debt to Equity Ratio for the quarter that ended in Jan. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(25.17	+	99.712)	/	190.817
	=	0.65

Roots (TSX:ROOT) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Roots Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Roots's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Roots (TSX:ROOT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Roots Corp (TSX:ROOT) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

RROTF:USA

Address

1400 Castlefield Avenue, Toronto, ON, CAN, M6B 4C4

Website

https://www.roots.com

Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, and luggage; kids & baby clothing; and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer, which accounts for the majority of revenue, and Partners & Other. The DTC segment sells products through the company's corporate retail stores and e-commerce. The Partners & Other segment engage in the wholesale of Roots-branded products to the company's international operating partner, and it earns royalties on the retail sales of Roots-branded products. The company has operating stores in Canada, the United States, Taiwan, China, and Hong Kong.